WSG Nimbus Pte Ltd v. Board of Control for Cricket in Sri Lanka

[2002] 3 SLR 603 (2002)

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WSG Nimbus Pte Ltd v. Board of Control for Cricket in Sri Lanka

Singapore High Court
[2002] 3 SLR 603 (2002)

Facts

WSG Nimbus Pte Ltd (WSG Nimbus) (plaintiff) and the Board of Control for Cricket in Sri Lanka (the board) (defendant) entered a contract allowing WSG Nimbus to obtain broadcasting rights for the national Sri Lankan cricket team. The contract clause entitled “Law/Arbitration” stated that in the event that the parties cannot resolve an issue with good-faith negotiation, either party “may elect to submit the matter to arbitration.” The clause also stated that English law governed the arbitration agreement and that any arbitration would occur in Singapore in accordance with the Arbitration Rules of the Singapore International Arbitration Center. A dispute arose between the parties, and WSG Nimbus initiated arbitration. The board filed a lawsuit in the Colombo High Court, arguing that, under Section 5 of the Sri Lankan Arbitration Act, the arbitration agreement was invalid because it was not a compulsory arbitration clause. When the board initiated its lawsuit in Sri Lanka, WSG Nimbus responded in Singaporean courts seeking an injunction against the board’s suit in Sri Lankan courts.

Rule of Law

Issue

Holding and Reasoning (Lee Seiu Kin, J.)

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